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Australia shares slip on Fed, Trump-Xi summit anxiety; NZ edge up

Thursday, April 6, 2017 - 15:36

PHOTO: REUTERS

[BENGALURU] Australian shares closed down on Thursday, pressured by signs the US Federal Reserve may trim its massive asset holdings earlier than expected and a highly anticipated meeting between the US and Chinese presidents later in the day.

The cautious mood weighed on Wall Street overnight and dragged down regional markets, denting the S&P/ASX 200 index by 0.34 per cent to 5,856.30 at the close of trade.

Minutes from the March Fed meeting showed most policymakers thought the US central bank should take steps to begin trimming its US$4.5 trillion balance sheet later this year. Wall Street banks had expected no changes until mid-2018.

Australian banks, which have been under selling pressure in the past week as regulators stepped up curbs on home lending, fell one per cent. The "Big Four" gave up 0.9 to 1.4 per cent.